Lumen Technologies Inc (LUMN)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 25,990,000 | 28,649,000 | 28,852,000 | 20,476,000 | 20,796,000 | 14,638,000 | 14,795,000 | 15,013,000 | 15,464,000 | 21,381,000 | 21,904,000 | 22,275,000 | 22,491,000 | 12,976,000 | 13,353,000 | 13,666,000 | 27,035,000 | 27,029,000 | 27,297,000 | 27,830,000 |
| Payables | US$ in thousands | 1,134,000 | 1,015,000 | 1,171,000 | 1,131,000 | 1,044,000 | 1,009,000 | 1,053,000 | 902,000 | 758,000 | 829,000 | 966,000 | 1,017,000 | 1,134,000 | 1,364,000 | 1,448,000 | 1,581,000 | 1,724,000 | 1,712,000 | 1,634,000 | 1,481,000 |
| Payables turnover | 22.92 | 28.23 | 24.64 | 18.10 | 19.92 | 14.51 | 14.05 | 16.64 | 20.40 | 25.79 | 22.67 | 21.90 | 19.83 | 9.51 | 9.22 | 8.64 | 15.68 | 15.79 | 16.71 | 18.79 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $25,990,000K ÷ $1,134,000K
= 22.92
Using the data provided for Lumen Technologies Inc payables turnover, we can observe fluctuations in the company's efficiency in managing its accounts payables over the past eight quarters. The payables turnover ratio measures how many times a company pays off its average accounts payable balance in a given period.
In Q4 2023, the payables turnover ratio was 6.30, indicating that Lumen Technologies Inc paid off its suppliers approximately 6.3 times during that quarter. This ratio decreased compared to the previous quarter's figure of 7.13 in Q3 2023. A decreasing payables turnover ratio may suggest that the company is taking longer to pay off its suppliers, potentially signaling liquidity issues or changes in payment terms.
Looking back further, the payables turnover ratio in Q4 2022 was higher at 8.28, indicating a quicker turnover of accounts payables compared to the most recent quarter. The trend of decreasing payables turnover over the past few quarters could be a point of concern, as it may imply inefficiencies in managing supplier payments or potential cash flow constraints.
Overall, fluctuations in the payables turnover ratio for Lumen Technologies Inc suggest variations in the company's ability to manage its accounts payables efficiently. Further analysis of the underlying reasons for these changes, such as changes in payment terms, cash flow constraints, or operational challenges, would provide more insights into the company's financial health and working capital management.
Peer comparison
Dec 31, 2023